Providing for Doubtful Accounts
At the end of the current year, the accounts receivable account has a balance of $ and sales for the year total $
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.
Open spreadsheet
Determine the amount of the adjusting entry to provide for doubtful accounts under each of the following independent assumptions:
a The allowance account before adjustment has a negative balance of $ An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $
fill in the blank of $
b The allowance account before adjustment has a positive balance of $ An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $
fill in the blank of $
